Case 7-1: Bridgecon Contractors Bridgecon is a medium-size construction com- bridge indicates acceptance of the plan by the rail pany that specializes in the detail design and authority as one of the criteria for the selection construction of bridges that combine steel and of a contractor. At this stage it is evident that, concrete elements. from the start of Activity D until the completion The Marketing Division is responsible for the of Activity S, the operation of one of the railfirst phase in the Bridgecon project management way lines will be impaired, and a preliminary, methodology that includes the identification of an informal discussion with someone from the rail opportunity as well as an assessment of the align- authority indicates that this might be acceptable. ment of the opportunity with strategic guidelines. On a subsequent meeting with the rail authorities, An opportunity has recently been identified by concern is expressed about the planned 17 weeks Marketing: A well-known bridge architect has just of impaired operation and Bridgecon is requested completed the concept design of a cable-stayed to reconsider the duration of this period. The bridge, intended to cross over electrified railway estimating team now suggests the following lines. The senior managers are excited about this possibilities: opportunity, and this marks the end of the first phase. Bridgecon now enters the second phase- - The duration of Activity N could be reduced the Estimating phase. This phase includes site from 1 week to half a week by hiring addivisits by the estimating team, review of resources tional trucks. The additional cost would be and skills available, a more detailed risk review $33,000. than the one done during the first phase, as well - An alternative subcontractor for piling has as a preliminary plan for detail design, procure- been approached. This subcontractor indiment, logistics, and construction. The deliver- cates that it would be able to halve the time able of this phase is an initial presentation to the of Activity H and provides a first round cost customer. The third phase (Pre-contract phase) indication of $960,000 for such an expedited should lead to a contract signed by both Bridgecon piling operation. and the customer. In Table 7-6, Activities A and B - Two steps to shorten the duration of Activity D are required for preparing a bid for building the are possible: First, additional temporary workbridge and form part of the second phase. ers could be employed. This would reduce The project manager who leads the esti- the duration to 3 weeks and increase the cost mating team sets up a number of meetings with to $147,000. Second, a team of workers highly stakeholders. First meetings were held with the skilled in this type of procedure (with their bridge architect and structural engineers who equipment) could be temporarily reallocated produced the concept design in order to acquaint from another site to this project, and the estimatthe estimating team with the design. The estimat- ing team believes that adding this team to the ing team then meets with subcontractors who original team and temporary workers would might be selected for piling and for fabrication of lead to completion of the work within 1 week. steel components. The columns "initial duration The project manager of the other project indiestimate" and "initial cost estimate" of Table 7-6 cates that such a reallocation would cause him are completed subsequent to these meetings. to forfeit an incentive fee of $150,000 for finishThe RFP (request for proposal) for building the ing his project early. The two project managers Chapter 7 Advanced Project Network Analyses and Scheduling 285 Table 7.6 Activities for constructinn thannh .. . agree that, should the reallocation be made, the valueofincentivefeewouldbebookedasacostagainstthecable-stayedbridgeprojectandwouldincreasethecostto$730,000whileafur-thersteptoreducedurationto2weekswould transferred to the other project. bring the total cost of this activity to $820,000. - The duration of Activity F can also be an increase of expenditures on Activity Q to a A step that would reduce duration to 3 reduced._ total of $2,929,000 would reduce the duration of this activity to 2 weeks. QUESTIONS 1. Compile a list showing the reduced periods for impairment of the rail operation and the associated additional costs. 2. Comment on the impact that crashing might have on the risk of not meeting the committed due date. Case 7-1: Bridgecon Contractors Bridgecon is a medium-size construction com- bridge indicates acceptance of the plan by the rail pany that specializes in the detail design and authority as one of the criteria for the selection construction of bridges that combine steel and of a contractor. At this stage it is evident that, concrete elements. from the start of Activity D until the completion The Marketing Division is responsible for the of Activity S, the operation of one of the railfirst phase in the Bridgecon project management way lines will be impaired, and a preliminary, methodology that includes the identification of an informal discussion with someone from the rail opportunity as well as an assessment of the align- authority indicates that this might be acceptable. ment of the opportunity with strategic guidelines. On a subsequent meeting with the rail authorities, An opportunity has recently been identified by concern is expressed about the planned 17 weeks Marketing: A well-known bridge architect has just of impaired operation and Bridgecon is requested completed the concept design of a cable-stayed to reconsider the duration of this period. The bridge, intended to cross over electrified railway estimating team now suggests the following lines. The senior managers are excited about this possibilities: opportunity, and this marks the end of the first phase. Bridgecon now enters the second phase- - The duration of Activity N could be reduced the Estimating phase. This phase includes site from 1 week to half a week by hiring addivisits by the estimating team, review of resources tional trucks. The additional cost would be and skills available, a more detailed risk review $33,000. than the one done during the first phase, as well - An alternative subcontractor for piling has as a preliminary plan for detail design, procure- been approached. This subcontractor indiment, logistics, and construction. The deliver- cates that it would be able to halve the time able of this phase is an initial presentation to the of Activity H and provides a first round cost customer. The third phase (Pre-contract phase) indication of $960,000 for such an expedited should lead to a contract signed by both Bridgecon piling operation. and the customer. In Table 7-6, Activities A and B - Two steps to shorten the duration of Activity D are required for preparing a bid for building the are possible: First, additional temporary workbridge and form part of the second phase. ers could be employed. This would reduce The project manager who leads the esti- the duration to 3 weeks and increase the cost mating team sets up a number of meetings with to $147,000. Second, a team of workers highly stakeholders. First meetings were held with the skilled in this type of procedure (with their bridge architect and structural engineers who equipment) could be temporarily reallocated produced the concept design in order to acquaint from another site to this project, and the estimatthe estimating team with the design. The estimat- ing team believes that adding this team to the ing team then meets with subcontractors who original team and temporary workers would might be selected for piling and for fabrication of lead to completion of the work within 1 week. steel components. The columns "initial duration The project manager of the other project indiestimate" and "initial cost estimate" of Table 7-6 cates that such a reallocation would cause him are completed subsequent to these meetings. to forfeit an incentive fee of $150,000 for finishThe RFP (request for proposal) for building the ing his project early. The two project managers Chapter 7 Advanced Project Network Analyses and Scheduling 285 Table 7.6 Activities for constructinn thannh .. . agree that, should the reallocation be made, the valueofincentivefeewouldbebookedasacostagainstthecable-stayedbridgeprojectandwouldincreasethecostto$730,000whileafur-thersteptoreducedurationto2weekswould transferred to the other project. bring the total cost of this activity to $820,000. - The duration of Activity F can also be an increase of expenditures on Activity Q to a A step that would reduce duration to 3 reduced._ total of $2,929,000 would reduce the duration of this activity to 2 weeks. QUESTIONS 1. Compile a list showing the reduced periods for impairment of the rail operation and the associated additional costs. 2. Comment on the impact that crashing might have on the risk of not meeting the committed due date